2. Types of ownership: private ownership
• A private company is a company whose ownership is completely private, a
result of this is that it doesn’t need to meet strict Securities and Exchange
Commission filing requirements that public companies require.
• An example of a private company is ITV.
• A big advantage of Private ownership is that it is run purely on advertising funds,
so this means there are many companies that are desperate to advertise their
product on TV, as TV is now one of the most influential sources of current
media. So this means that the more popular that channel is, the more money
companies are willing to pay more to advertise, so private ownership generates
a lot of funding and money.
• However a disadvantage of private ownership is that as BBC is a public owner
before they create a new show they spend a lot of money on research to find out
how popular hat show will be, this is before even funding the show. However if a
private channel, for example ITV liked a show, they could fund the show
immediately without the input of the public, which could mean the show could
fail miserably. So there is some chance of the show failing.
3. Types of ownership: public service
• Public service ownership is completely funded by the government
with the TV license which TV owners have to pay. An example of this
is the BBC, because they are run by the government they have to
cater to the publics wants and interested. So this enables the
audience the public to complain and give feedback and make
changes to what is shown.
• Advantages to public service ownership is that because the BBC is
ran completely on the basis of what the public want, the shows are
designed purposely around the wants of the public so you get wide
variety of different shows to suit many different people.
• Disadvantages would be that the majority of people are very willing to
subscribe to companies like Sky and Virgin Media and pay for them
rather tan pay for a TV license that only funds the BBC.
4. Types of ownership: independent
• An independent company is a record label which
operates without the funding of the organizations of the
major record labels. Lots of bands or musical acts begin
as independent labels.
• An example of an independent record label is Domino
Recording Company.
• Advantages of independent record labels is that they
have more control over what they create.
• However the disadvantages of an independent record
label is that they don’t produce as much money as
others.
5. Types of ownership: conglomerate
• A media conglomerate is basically a company which owns a
large amount of other companies in many different mass
media forms, for example television, radio or movies. Media
conglomerate companies aim for policies that make it easier
to control different markets around the world.
• An advantage to media conglomerates would be that also
show the growth of earnings, this is by acquiring companies
who have shares that are more discounted then their own.
• A disadvantage of media conglomerates are that Culture
clashes can destroy the value of the company; the extra
layers of management can increase costs.
6. Types of Companies:
Horizontal Integration
• Horizontal integration is when a production
company expands their business into other areas
of an industry. This means the company can then
develop in a specific area of production or they can
buy out another company that deals with these
areas.
7. Types of Companies:
Vertical Integration
• Vertical integration is when a media company has the
ownership of different businesses in the same chain of
production ad distribution. For example, Sony owns a
variety of different entertainment companies such as
Columbia Pictures and Tri-Star.
• In 1984 Columbia brought out the film Karate Kid, Sony
then bought the Columbia and remade the film Karate
Kid in 2010. By doing this, they receive the profit from the
distribution and exhibition of the film.
8. Cross Media convergence
• Cross Media Convergence is when two or more companies
work together to produce, distribute or exhibit a film. It can also
be used to help market the film too, with the combination of the
music industry and film industry for a soundtrack. For example,
when a music artist is used on the soundtrack for a film, it will
benefit both the film production company and the music artist.
A well known example of this would be the music artist Adele
being used on the soundtrack for the James Bond film, Skyfall.
9. Synergy
• Synergy is the relationship between a company and other industries,
for example a film production company that then expands into other
industries for example, clothing, DVD or Blu-ray companies.
• For example, when a film is brought out and proves to be popular, the
film production company will decide to create merchandise that
surrounds that film, this could be T Shirts, Mugs or Posters that could
include the main actor or the logo for that film. They could even make
video games based on the film, and therefore they will make more
profit from consumers buying that merchandise.
10. Describe the Structure of the Music
Industry
• The media industry contains two major record label
types, there are Major Labels that consist of Sony,
Warner and Universal (The Big 3) and Independent
Labels. Major labels tend to be very mainstream
and usually consist of Pop and Chart music, for
example One Direction or Beyoncé. Where as,
independent labels cater for more niche music for
example, indie music, artistic music, punk music
and metal music. There are also subsidiary labels
that are smaller companies that are owned by a
major label.
11. Walt Disney
• The company I have chosen to do
my case study surround is going
to be Disney they are a
conglomerate global company
who now run a series of TV
subsidiaries, TV stations that
produce and show kids, news and
documentary channels. They also
provide a music section where
many child actors have diverged
into such as, Miley Cyrus, Demi
Lovato and Selena Gomez.
12. Ownership
• The Walt Disney Company or more formally known as ‘Disney’ own
many different media platforms. They operate through five primary
business units which includes The Walt Disney Studios that includes the
company’s film, recording label and theatrical elements. Their Parks and
Resorts which features the companies theme parks, cruise lines and any
travel-related assets. Disney Consumer Products which provides and
produces the toys, clothing and other merchandise based on the
company’s television shows. The Media Networks which includes the
Disney TV stations (Disney Channel, Disney XD) and finally, Disney
Interactive, which dals with the companies Internet, mobile, social media
and computer game operations.
• This means any product that their company makes they own the full
rights and copyrights for. Which means they will collect all the money
and profit that comes through these areas, from the Theme Parks to the
Merchandise sold there.
13. • Disney not only owns the rights to their own made products but the
Disney Media Networks also own various television networks and
cable channels.
• For example The Walt Disney Company owns the ABC Television
Network, ABC Family Worldwide, ABC Family, ABC Owned
Television Stations Group they even own 50% of A+E Networks.
• The Walt Disney Company also owns their own Radio ‘Radio Disney’
32% of the online service Hulu and a massive 80% of ESPN Inc.
• This means that all the subsidiary companies they own, The Walt
Disney Company will make a profit from each of these channels.
Including profit from their own made companies. They will also own
either all of the copy right and rights to these subsidiaries or only a
few copyrights where they only own a certain percentage of the
company (ESPN, A+E Networks).
• They also recently bought the rights and now own Marvel
Entertainment and Lucas films, which there was a huge reaction
from original fans.
14. Competitors
• The Walt Disney Company has three main
competitors which are, 21st
Century FOX,
Universal and Time Warner. Each of these
companies are global conglomerates.
Combined, these companies control over 65%
of the whole media and TV’s Market value.
• These companies compete over ownership of
certain things, for example 21st
Century Fox
own the rights to X-Men which are apart of
Marvel, so when Disney bought the rights to
Marvel, they also wanted to buy the rights from
21st
Century Fox for X-Men, however 21st
Century Fox would not sell the franchise. This
is just one example of what they compete for.
15.
16. Audience
• Because The Walt Disney Company broadcast to
over 300 million homes in 35 different languages
and in 168 companies, they pretty much
broadcast to all different kinds of audiences. For
example, children or pre-teens will watch The
Disney Channel, where as adults may watch the
channel ABC Family or ESPN.
• Their films also reach out to a vide variety of
audiences, children may want to watch the
newest Disney princess film, where as young
adults, children and adults may watch the Marvel
films.
• So in a way, Disney reaches to every one and
every possible audience. Even with their parks
and attractions, there are rides to cater for
everyone from children's rides with live actors as
their favourite princess’ to rides for thrill seekers.
17. Disney Controversy
• Disney has received a lot of
controversy over the years
however the most recent occasions
would be when Disney bought the
rights to Marvel and Lucas Films.
• They received a lot of controversy
especially online, long time fans of
the Marvel films or Star Wars felt
like Disney could possibly ruin the
franchise, by taking it away from its
original roots and directors.
• However when Iron Man was
released, they received a lot of
positive feedback as many fans
enjoyed their/marvel’s rendition of
the comic books.
